Exchange market data manipulation bringing the whole crypto market down?

[imjustagirl]

Hi guys,
I was investigating the recent market plunge and this is my two cents as to why the crypto market is experiencing this situation.
Some people were tying this to the fake news about Goldman Sachs crypto desk plans change, but I think this is due to an exchange faking data.
The news that BitForex is faking data came around auguest 26th. Now this is what can really be happening on the market.
An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.
I do not see a real economic situation in which this can be true.
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

   

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[davis196]

"lists fake data"?Where?
So you think that only one crypto trading platform can manipulate the entire market by just spamming fake data about prices?Are you talking about ethereum price manipulation only,or about all cryptocurrenicy prices being manipulated?Spamming around social media and crypto news websites isn't for free,This requires serious investment.I'm pretty sure that some altcoin can be manipulated by using this method,but it just won't work with bitcoin.

[aoihs00]

"lists fake data"?Where?
So you think that only one crypto trading platform can manipulate the entire market by just spamming fake data about prices?Are you talking about ethereum price manipulation only,or about all cryptocurrenicy prices being manipulated?Spamming around social media and crypto news websites isn't for free,This requires serious investment.I'm pretty sure that some altcoin can be manipulated by using this method,but it just won't work with bitcoin.

I guess this has got to be related with the CMC data manipulation. It is proven that CMC is always playing with the prices and they are not showing the real time data or may be they are showing prices which are either less or more at a time and present them in that way so that people can take the wrong decision while investing. This is meant to be manipulated because if the prices are shown less then people tend to buy huge amount of money and thus price naturally grows for the market and they can benefit from this pump.

Similar things can be done with the exchangers also and many think that most of the exchangers keep doing such manipulation all the time.

[peter0425]

~ snip ~
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

I don't know if you are aware about the fake volumes and manipulations done by the Chinese exchange during the early part of 2017. And then suddenly Chinese turn their backs on country for good. But to stop it globally, I don't think its possible because we all know that cypto is decentralized and free market. So there's no central authority to look at this so called fake volumes or market manipulations. I agree that its very fraudulent but I don't think that its the first time that we have witnessed it. It's just very obvious lately because of the bear market and every tilt of the price is noticeable. So the only thing we can do is just be vigilant and take every precautions possible to avoid losses in our end.

[Ranly123]

Hi guys,
I was investigating the recent market plunge and this is my two cents as to why the crypto market is experiencing this situation.
Some people were tying this to the fake news about Goldman Sachs crypto desk plans change, but I think this is due to an exchange faking data.
The news that BitForex is faking data came around auguest 26th. Now this is what can really be happening on the market.
An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.
I do not see a real economic situation in which this can be true.
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

   

Maybe you got the point that there is market manipulation on crypto prices. But with that you have stated, one exchange cannot manipulate the whole market of crypto. Maybe fraudulent news or price data has been spread to misguide investors but they cannot totally manipulate crypto prices.

[kryptqnick]

An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.

Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

I've never heard about the data on price dynamics being faked, could you provide a source of proof? I still trust coinmarketcap more than anything and I'd relaly like to know whether it is not to be trusted anymore. I do remember an article on 'top' (de facto top, but the names don't sound familiar) exchanges faking their thading volume to get in the lists of the best exchanges: https://www.blockchaintransparency.org/reports/. Any manipulations of such kinds are undermining the trust of people and that can only lead to panic selling. And yet I still believe that the main reason behind the market going down is non-believing investors and regular insignificant but bad news.

[GDragon]

As my own perspective, the market was not responsible for this scheme, it will not do a thing that can hurt their clients because at the end of the day, investors are their main player here. So you may think that manipulation might be done by the whales or a group of investors.

[tomahawk9]

Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

CMC is not to be trusted, they already have a histority of data manipulation to manipulate the entire cryptosphere, but I doubt some they're behind the recent drop. What we're seeing lately is just blatant market manipulation, big whales playing games by dumping big chuncks of btc to scare off the weak hands and panic sellers so that the price goes further down.

I don't know if exchanges are also trying to bring the prices down, but I wouldn't be surprised to see them collaborating with the whales, at the end of the day, it's all a business.

[Kakmakr]

Price manipulation is one of the reasons why the SEC is reluctant to approve Bitcoin ETF's, but that is not necessarily a bad thing.  We have had price manipulation on some less reputable exchanges for many years and this was so severe at one stage that some governments had to close down these exchanges.

The best thing you can do is to exclude these exchanges from price determination, if it is proven that these exchanges are being dishonest. I seldom use the prices being reported from the smaller and less known Crypto currency exchanges. 

You can also add and remove exchanges from sites like Preev.com, where a average price is being calculated from different data sources.

[1Referee]

Price manipulation is one of the reasons why the SEC is reluctant to approve Bitcoin ETF's, but that is not necessarily a bad thing.  We have had price manipulation on some less reputable exchanges for many years and this was so severe at one stage that some governments had to close down these exchanges. 

Price manipulation happens everywhere, so that's not really the main criteria for them to keep rejecting ETF's. The SEC wants to walk into an exchange office within their own jurisdiction and raid the crap out of it in order to find out who the bad actors are in case of manipulation. Currently that's near impossible since exchanges operating within the US are so called 'following' exchanges and not those that are leading the market.

The collection of current leading exchanges consists of Bitfinex, Binance, Huobi, OKEx, Bithumb. All Asian focused. No way the SEC is going to allow an ETF to come through like this.

[Semosuchi Tesongrato]

Big investors have always manipulated the market with more or less legitimate means, spreading rumors, or suddenly making big purchases or big sales.
In the world of crytpo, where everything is firmly in the hands of the whales, it is even more possible.
But to think that someone can influence the data of ALL the exchange ... well, it seems to me frankly science fiction.

[hubballi]

Hi guys,
I was investigating the recent market plunge and this is my two cents as to why the crypto market is experiencing this situation.
Some people were tying this to the fake news about Goldman Sachs crypto desk plans change, but I think this is due to an exchange faking data.
The news that BitForex is faking data came around auguest 26th. Now this is what can really be happening on the market.
An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.
I do not see a real economic situation in which this can be true.
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

   

I totally agree that This coinmarketcap is just a fake and exchanges are making false trading and increasing their site trading value, so that seeing that more users will join the site and they will get more users joining.

[deisik]

"lists fake data"?Where?
So you think that only one crypto trading platform can manipulate the entire market by just spamming fake data about prices?Are you talking about ethereum price manipulation only,or about all cryptocurrenicy prices being manipulated?Spamming around social media and crypto news websites isn't for free,This requires serious investment.I'm pretty sure that some altcoin can be manipulated by using this method,but it just won't work with bitcoin.

I guess this has got to be related with the CMC data manipulation. It is proven that CMC is always playing with the prices and they are not showing the real time data or may be they are showing prices which are either less or more at a time and present them in that way so that people can take the wrong decision while investing. This is meant to be manipulated because if the prices are shown less then people tend to buy huge amount of money and thus price naturally grows for the market and they can benefit from this pump.

Similar things can be done with the exchangers also and many think that most of the exchangers keep doing such manipulation all the time.

As for myself, I don't believe very much in such things (or stories), like someone manipulating prices up and down now and then. Yeah, I know, you're not paranoid, they are really watching you. But you can't beat reality, at least not all the time. So if someone is selling a few (dozen) thousand bitcoins, no amount of manipulation will be able to stop prices from crashing. It works the other way as good. If someone with really deep pockets shells out and buys as many bitcoins, no manipulator will be able to stop prices from surging. In fact, real manipulation makes sense and takes place when the market is willing to be manipulated

That's what market manipulation theorists seem to forget most of the time

[ovbokhan]

It sound reasonable that those who profited from the recent price manipulation were the same persons that paid for the promotion of the fake news that caused the panic

[fempat]

Hi guys,
I was investigating the recent market plunge and this is my two cents as to why the crypto market is experiencing this situation.
Some people were tying this to the fake news about Goldman Sachs crypto desk plans change, but I think this is due to an exchange faking data.
The news that BitForex is faking data came around auguest 26th. Now this is what can really be happening on the market.
An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.
I do not see a real economic situation in which this can be true.
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

   

Maybe you got the point that there is market manipulation on crypto prices. But with that you have stated, one exchange cannot manipulate the whole market of crypto. Maybe fraudulent news or price data has been spread to misguide investors but they cannot totally manipulate crypto prices.

It might not be just a single exchange. What if there are several others that are doing this also? We haven't heard about them yet because they have not been exposed.

[abruchifid]

The market may continue until people finally understand how it is played and will be less inclined to sell off their bitcoins in a panic or dump in price, it will gradually become less severe as everyone will learn to ignore it.And the market will just grow naturally

[hxtop]

Of course, all sorts of price manipulations are heavily influencing the crypto market. Unlike manipulations this year, I think the changing economic conditions in the world are also having a negative effect on the crypto market.

[lephuqui]

Hi guys,
I was investigating the recent market plunge and this is my two cents as to why the crypto market is experiencing this situation.
Some people were tying this to the fake news about Goldman Sachs crypto desk plans change, but I think this is due to an exchange faking data.
The news that BitForex is faking data came around auguest 26th. Now this is what can really be happening on the market.
An exchange lists fake data about the price dropping rapidly, then it buys the real crypto at the discount price (knowing that the price is "fake") on other exchanges.
After this, the same exchange spams fake data the other way around and sells the currency at the real or overvalued price = profit!
Today Coinmarketcap states that BitForex ethereum volume is  $1,090,589,986, which is 40% of the whole market.
I do not see a real economic situation in which this can be true.
The question is when will such hoax schemes of market manipulation stop?
Really, coinmarketcap was such a trusted source of market data and now this is just a very sad situation. What do you think? What are your speculations about the recent price changes?

   

I see the launch of many fud + spam large amount of transactions is absolutely not true. They are trying to make us think that there is a huge sale going on in the market and withdrawing from it. Trading volatility is quite unusual, perhaps this will be a terrible dump of the market this year. Prices may go down so they can accumulate a large amount to complete a year of decline for the market. And hold enough coins to keep the market.

[entrepmind23]

Of course, all sorts of price manipulations are heavily influencing the crypto market. Unlike manipulations this year, I think the changing economic conditions in the world are also having a negative effect on the crypto market.

In our country alone, people are having problems how to budget their salaries because of the continuous increase of the basic necessities due to inflation that's why the investment vehicles are down not only in cryptocurrency market but including the stock market and exchange rates are going down as well. We are currently in a financial crisis that's why the market is down and you add to it the bad news about every thing related to bitcoin and it would cause people to panic sell.

The market may continue until people finally understand how it is played and will be less inclined to sell off their bitcoins in a panic or dump in price, it will gradually become less severe as everyone will learn to ignore it.And the market will just grow naturally

Every time the market goes down, it's not only the newbies who panic sell that are doing it but those who are professional traders are selling as well because they know how to short the market and if you have observed in the past, it is more profitable to short it because it's going down too fast compared to going up that's why they are at an advantage when it comes to shorting and when it drops, it drops hard.

[deisik]

Every time the market goes down, it's not only the newbies who panic sell that are doing it but those who are professional traders are selling as well because they know how to short the market and if you have observed in the past, it is more profitable to short it because it's going down too fast compared to going up that's why they are at an advantage when it comes to shorting and when it drops, it drops hard.

Personally, I don't think that naked shorting makes sense unless you have insider info. I recall when a couple years ago some dude lost something like 600 bitcoins (when the price was still below $1000). He obviously expected that it wouldn't go above that mark and would soon correct, but it didn't happen and the price went exponential well beyond 1000 as we all now know. And in the end this hapless trader had his position forcefully liquidated by the exchange. Shorting makes sense when you are hedging, for example, against volatility or even exchange itself and their dirty tricks, while naked shorts can be fatal to your account sooner than you think

Always remember that with shorts your profit potential is limited while your losses are limited only by the balance of your account